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Tokyo stocks rise in morning on gains in tech shares

This May 7, 2020 file photo shows the Tokyo Stock Exchange. (Mainichi)

TOKYO (Kyodo) -- Tokyo stocks rose Friday morning, spurred by buying of major technology shares after gains by U.S. peers overnight.

    The 225-issue Nikkei Stock Average gained 116.70 points, or 0.43 percent, from Thursday to 27,518.75. The broader Topix index was up 4.10 points, or 0.21 percent, at 1,969.27.

    On the top-tier Prime Market, gainers were led by precision instrument, electric appliance and marine transportation shares.

    The U.S. dollar was almost unchanged in the upper 128 yen zone in Tokyo, as investors refrained from active trading ahead of the release of key U.S. employment data later in the day.

    At noon, the dollar fetched 128.56-59 yen compared with 128.66-76 yen in New York and 128.65-67 yen in Tokyo at 5 p.m. Thursday.

    The euro was quoted at $1.0888-0892 and 139.98-140.06 yen against $1.0906-0916 and 140.42-52 yen in New York, and $1.0993-0994 and 141.43-47 yen in Tokyo late Thursday afternoon.

    The Nikkei index extended gains after the tech-heavy Nasdaq composite index surged over 3 percent following Federal Reserve Chair Jerome Powell's dovish remarks Wednesday, which prompted speculation that the interest rate hike cycle in the United States is nearing its end.

    Buying of Japanese technology issues was encouraged by overnight gains in U.S. tech giants, including Facebook operator Meta Platforms Inc. following its announcement of better-than-expected earnings, said Kazuo Kamitani, strategist at Nomura Securities Co.

    Sony Group surged 540 yen, 4.7 percent, to 12,030 yen, after lifting its net profit forecast for the current business year to 870 billion yen ($7 billion), up 4 percent from its earlier projection, thanks to robust demand in its gaming division.

    "Japanese stocks this week appeared to reflect earnings results, with shares of companies reporting favorable performances drawing buying and those announcing disappointing results facing selling," Kamitani said.

    Among other tech shares, Murata Manufacturing climbed 278 yen, or 3.7 percent, to 7,768 yen, while electric component maker TDK gained 125 yen, or 2.7 percent, to 4,810 yen.

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